Boeing 2010 Annual Report Download - page 107

ShareValue Trust
The ShareValue Trust, established July 1, 1996, was a 14-year irrevocable trust that held shares of our
common stock, received dividends, and distributed to employees the appreciation in value above a
3% per annum threshold rate of return at the end of each period. At June 30, 2010, the appreciation in
stock price did not exceed the threshold, and no distribution was triggered for the final period of the
trust. This was the final investment period of the trust, and no potential distributions remain. The trust
was terminated effective July 1, 2010 with the 29,948,920 undistributed shares returned to the
Company. Deferred tax assets of $229 related to the undistributed shares were written off at June 30,
2010, offset against previous excess tax benefits recorded in Additional paid-in capital.
Other Compensation Arrangements
Performance Awards
Performance Awards are cash units that pay out based on the achievement of long-term financial goals
at the end of a three-year period. Each unit has an initial value of $100 dollars per unit. The amount
payable at the end of the three-year performance period may be anywhere from $0 to $200 dollars per
unit, depending on the Company’s performance against plan for a three-year period. The
Compensation Committee has the discretion to pay these awards in cash, stock, or a combination of
both after the three-year performance period. Compensation expense, based on the estimated
performance payout, is recognized ratably over the performance period.
During 2010, 2009 and 2008, we granted Performance Awards to our executives with the payout
based on the achievement of financial goals for each three-year period following the grant date. The
minimum payout amount is $0 and the maximum amount we could be required to pay out for the 2010
and 2009 Performance Awards is $250 and $290. There will be no payout of the 2008 Performance
Awards.
Deferred Compensation
The Company has a deferred compensation plan which permits executives to defer receipt of a portion
of their salary, bonus, and certain other incentive awards. Prior to May 1, 2006, employees who
participated in the deferred compensation plan could choose to defer in either an interest earning
account or a Boeing stock unit account. Effective May 1, 2006, participants can diversify deferred
compensation among 19 investment funds including the interest earning account and the Boeing stock
unit account.
Total expense/(income) related to deferred compensation was $112, $158 and ($223) in 2010, 2009
and 2008, respectively. Additionally, for employees who elected to defer their compensation in stock
units prior to January 1, 2006, the Company matched 25% of the deferral with additional stock units.
Effective January 1, 2006, all matching contributions are settled in stock upon retirement. As of
December 31, 2010 and 2009, the deferred compensation liability which is being marked to market
was $1,149 and $1,143.
Note 16 – Shareholders’ Equity
On October 29, 2007, the Board approved the repurchase of up to $7,000 of common stock (the
Program). Unless terminated earlier by a Board resolution, the Program will expire when we have used
all authorized funds for repurchase. At December 31, 2010, $3,610 in shares may still be purchased
under the Program.
As of December 31, 2010 and 2009, there were 1,200,000,000 shares of common stock and
20,000,000 shares of preferred stock authorized. No preferred stock has been issued.
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